AfDB launches $56m fund to finance climate projects in Africa

The African Development Bank Group (AfDB) has launched a new funding call for the development of climate projects across 37 low-income African countries.

With an initial allocation of $56 million, the Climate Action Window (CAW) Technical Assistance Facility, launched at COP29 in Baku, Azerbaijan, will support the preparation, financing, and implementation of adaptation and mitigation projects aligned with the Paris Agreement, Nationally Determined Contributions (NDCs), and National Adaptation Plans (NAPs).

The African Development Fund, AfDB’s concessional window, established the Climate Action Window under its 16th replenishment cycle to mobilise public and private sector resources for adaptation (75%), mitigation (15%), and technical assistance (10%), projects and improve low-income African countries’ capacity to attract climate finance.

Backed by significant funding commitments from partners including the United Kingdom, Netherlands, Germany, and Switzerland, the new Facility will be accepting proposals from governments, regional organizations, NGOs, and UN agencies in ADF countries through February 5, 2025, said the bank. Awards will range from $260,000 to $1.3 million per project.

The CAW provides a veritable channel for countries to meet their global climate commitments. This facility will ensure that projects in Africa’s most climate-vulnerable regions are well positioned to attract significant funding, creating a win-win scenario where countries can achieve climate targets, while advancing sustainable development

Dr. Kevin Kariuki, Afdb Vp for Power, Energy, and Climate Change

“Our partnership with the African Development Bank has proven the efficacy of co-financing,” said Euan Low, Regional Lead for Southern and Eastern Africa at GCF. “With $800 million in co-financing, we are leveraging $1.6 billion to ensure that Africa’s most vulnerable populations have access to critical adaptation resources.”

The launch of the facility will enable the African Development Bank to increase the reach of the CAW’s efforts. CAW represents the largest pipeline of adaptation projects in Africa, with 80 projects valued at $800 million already identified, and 41 projects funded. In its short operational span, CAW has mobilised additional co-financing and achieving partnerships with key climate funds, such as the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund.

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